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Bank Danamon (BDMN) became the first company on
the Stock Exchange that has released its financial statements for the period of
third quarter (Q3) of 2014/nine months of 2014. And the result? Well, since
early of 2014, BDMN is one of the listed banks whose management was not able to
deal with the negative impact of the increasing Bank Indonesia Rate (BI Rate),
which although the bank managed to increase the revenue, but the operating
profit and net profit fell significantly due to the increase in interest
expense, and the trend is still going on until now. Until Q3 2014, BDMN posts
net profit of Rp2.1 trillion, down 29.9% compared to the same period in 2013.

Soon, we’ll have another famous company in our
stock trading floor. PT Blue Bird, Tbk., and that’s all of the company’s name,
is the largest taxi company in Indonesia, as well as the most prominent in its
industry, so it was no wonder if the news of the IPO has triggered investor’s
curiosity. However, like any other ‘well-known goods’, the shares ain’t sold at
low prices, but between Rp7,200 – 9,300 per share, where the nominal value of
the shares is only Rp100 per share. The question is, of course, is it worth?

In one of his annual letters, Warren Buffett once
said this, 'We hope that you will stay with us forever (read: be a shareholder
of Berkshire Hathaway forever), and will not sell your stock just because you
worry about economic and political turmoil in the United States.’ Take a look
that Buffett said two words: the economy,
and politics. Buffett said the words
because, based on his experience as an investor, there are at least two things
that can make the American stock markets, including the company's performance
in it, decreased, ie the problems related to to the economy and political
situations, both in the national and global scale.

In last week article about when we, as
investors, should buy, hold, and sell our holdings (we call it portfolio
rebalancing), I said that you can buy certain stocks if there is an
extraordinary event that could occur at any time (so you would not need to wait
for the end of the month, let alone the end of the year), say if there are
certain stocks whose prices suddenly plummeted. Coincidentally, a few days ago there
was another 'extraordinary event', where the stock of BW Plantation (BWPT) suddenly drop from 1,000 in early September to
460, or lost more than half of its market value in a matter of weeks. Even
worse, the trading of the stock is now suspended!